GMS 200 Chapter Notes - Chapter 3: North American Free Trade Agreement, Global Sourcing, Protectionism

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Olga Tabunshchikova

Document Summary

Resource supplies, product markets and business competition and worldwide, rather than local. The process of growing interdependence of these components in the global economy. Management in organizations with business interests in more than one country. Aware of regional developments in a changing world. Businesses naturally grow and go international for such reasons; Profits- global operations that offer greater profit. Customers- global operations offer new markets to sell products. Suppliers- global operations offer access to needed products and services. Capital- global operations offer access to financial resources. Labour- global operations offer access to lower labour costs. Global businesses- conducts commercial transactions across the national boundaries. Market entry strategies involve the sale of goods or services to foreign markets but do not require expensive investments. Types of market entry strategies: global sourcing: materials or services are purchased around the world for local use, exporting: local products are sold abroad to foreign customers.